what should i do? file bankruptcy or credit counseling?

Question

i called different credit counseling but they tell me i dont make enough to qualify or i have 500 dollar payments a month. i only make 1000.00 a month and i still have to pay rent how can i pay 500 dollars a month. i need some advice

Answer 1

Call your credit card company if that's your main source of debt and try to negotiate a payment plan... see if they'll lower your APR, too. Many cards offer 0% APR for a year or so and allow balance transfers. If your CC company isn't willing to lower your APR, say that you're thinking of switching to one of these cards.

How much is your rent? You sound like you may be living beyond your means. If there's any way that you could get an apartment with a room mate and split the cost (rent + utility) see if you can do that... it's often cheaper to rent a 2BR apartment than 2 separate apts. Try to pay your rent first, then what you can to the debt... if student loans, try to pay the minimum on that because it's a really good rate and doesn't hurt nearly as much as do credit cards. Most CC companies will try to work with you, but you need to see where your money's going... write down every expense and see if you can cut out dining out (fast food, restaurants, etc) or if you have memberships you aren't using.

Answer 2

Use Consumer Credit Counseling. They can get the monthly payments down, and you may not have to worry with filing bankruptcy. They can also usually get creditors to forego interest and keep from charging extra each month.

I hate to suggest it, but if you have a job that has a 401K, you may be able to pull out some of that to pay the one with the highest interest rate off. Be aware, though, that there is a stiff penalty for early withdrawal of that if you're under age 59 1/2.

Find a less expensive apartment??? I know that's a challenge and there is the lease breaking thing, too, but sometimes that can be waived.

If you have to file for bankruptcy, check around for a reputable person to handle it for you. You sure don't want anybody who doesn't know what they're doing handling that because they will take you to the cleaners in all kinds of ways.

Best of luck!

Answer 3

File Bankruptcy only as a last resort. If there is absolutely no other way that you could ever get out of debt by reducing spending, getting a second job or whatever, then there may be no other way but bankruptcy. Chapter 7 is harder to file nowadays, but it all comes down to if you can't pay, you can't pay and you can get a second chance with a bankruptcy. If you do that, though, see it as a second chance and don't ever get yourself in that position again by overspending, etc. I filed chapter 7 back in August and it's been such a weight off my shoulders. But, I'm very thankful and I've learned my lesson and will NEVER be in that position again by my own fault anyway (overspending). In my opinion, life is too short to be miserable about your debt.

Answer 4

Don't simply believe bankruptcy is the solution. It might be, but it might not be the solution.

Are you aware of major changes last October 2005 to bankruptcy laws?

Are you aware it's gotten much more difficult to file bankruptcy?

Are you also aware Consumer Credit Counseling Service may not be the savior they claim to be?

I wish I could go in to greater detail.

If you're interested, take advantage of free (no strings attached) credit repair training offered at www.fixmyuglycredit.com

Please get informed quickly, especially if you're considering bankruptcy and CCCS.

This is very serious, as you undoubtedly realize.

Mike

Answer 5

I heard from my AG office, and also my daughter sent $500 to a debt relief agency of which ripped her off. Sometimes, debt consolidators are nothing more than scams.
If you want to know for sure if it is a legitamite company--check with your local BBB.
Also, call your local attorney general---ask how long the SOL is on CC debts, and check for date of last payment on your records.
In the end your best bet may be bankruptcy.
I would check out if the debt is legal to sue on first with the Attorney General.
Actually, depends, you could be assett proof-depending on your state, your method of income, and the equity in your property.
Think Are your wages garnishable---like from work. SSA and SSI and Veteran benefits r not. Be sure and claim this in the answer to the court if you have one to list the exemptions.
I am not an attorney. If the amount is over 3 grand-I would hire one if I were u, u may have grounds to ask for your attorney fees paid.
By the way, unless you have been sued, u do not need to do anything. Your account may be sold and resold several times.

Answer 6

The best solution is to join a debt settlement company who will work on your credit cards for $350 per month as monthly payments.

The debt settlement company will try to reduce your principal debt amount by around 30% to 70% depending on y our credit cards.

Check this website
http://www.debtfreeafterall.com

Answer 7

If you have alot of credit card debt, file for bankruptcy. And stop using credit to live beyond your means. Get another job, get training to further your skills, and only use cash.

Answer 8

dont opt for bankruptcy.............

Credit Counseling Programs: When you are stuck in debt, consider all the available options. You will need to work closely with experts who will provide right guidance to clear off your debts. Credit counseling agency is one such set of experts, equipped to fight debt. These

Answer 9

check out dave ramsey site. bankruptcy is ten long years on credit. Bad debt 7 years

Answer 10

The below article titled "bankruptcy tips and helpful alternatives" will help you.